A driver convicted of or found responsible for a driving-related offence may result in demerit points recorded on his/her record. These demerit points increase their auto insurance premiums, and the demerit points may stay on the driver's record for many years from the date of the offence. Unfortunately, this outcome introduces a substantial financial cost and penalty that may not accomplish the intended goal of safe driving and adherence to the appropriate driving rules and regulations.
Most demerit point systems impact the driver's auto insurance rate. At the time of vehicle insurance renewal, the auto insurer can review the driver's profile and adjust premiums based on their actuarial risks. Unfortunately, the link between demerit points and insurance risks is not always guaranteed. Some driving behaviors are simply anomalies or exceptions that may incur demerit points but may not be indicative of persistent poor driving behavior.